According to rumors, some of the President’s Goldman-Sachs economy czars gave him a good talking-to.

Donald Trump had bolstered his political standing, in part, for pushing two policy positions, both of which resonate with many (though not necessarily the same) Americans:

1. Trade deficits are bad . . . and are caused by a too-strong dollar.

2. Taxes on businesses and investments should be cut to encourage growth.

The Goldman-Sachs folks informed him (the rumor mill has it) that doing the second (2) would likely subvert the first (1) by strengthening the dollar.

Economist Bob Murphy (on Contra Krugman) notes that Trump’s lack of understanding here is hardly surprising, since only by studying economics would one see the connection, follow the chain of cause and effect that far. One would not learn this “by running a business.”

Most of everybody’s economic understanding and policy is on this level, because economics is not necessary to success in most enterprises.

Arguably, lack of economic understanding has long been a prerequisite for success in politics. People like to hear simple untruths stated boldly.